Today Ted Michalos and I appeared live for an hour long call in show on 570 News. We discussed a very timely topic: How to Survive the Economic Crisis. I expressed the opinion that the world has changed. Today it’s much harder to lease a car or get a mortgage. Even worse, if you already have debt, you probably are not getting the overtime or bonuses at work you were getting a year or two ago, and that makes it even harder to service your debt.

I gave some tips on How To Reduce Your Debt, and I explained that debt is dangerous in tough economic times. If you get laid off or have your hours cut back at work, Employment Insurance will probably be enough to cover your rent and help you buy groceries, but it won’t be enough to cover payments on credit cards and bank loans. That’s why it’s important to reduce debt now, before your financial situation gets worse.

But what do you do if your situation is already bad? I’ve met with a number of Cambridge residents over the last few weeks who have more debt than they can handle, and don’t know what to do. They don’t qualify for a debt consolidation loan, and they can’t afford credit counselling. That leaves two final options: a consumer proposal or personal bankruptcy.

Which option is right for you? As I told the callers on the radio show, the answer for you depends on your situation: your monthly income and expenses, what you own, and who you owe. Fortunately, we can help. Give our Cambridge office a call at (519) 622-3773, or e-mail us to arrange for a no-charge initial consultation; we will walk you through your options, and you will then have a plan to deal with your debts, and get a fresh start.

The results of the survey don’t surprise me. Even though the survey was done in the United States, it could just has easily have been done here in Cambridge, Ontario. Over the years I have met with hundreds of people who are burdened by the stress caused by their debts.

For many people, the stress gets to be so great that they can’t work, and of course not working makes the debt problems even worse.

Fortunately, there are options available. You do not need to suffer alone.

Some people benefit from credit counselling. In Cambridge you can contact Anthony Benedetto via the Family Counselling Centre of Cambridge and North Dumfries web site, or by phone here in Cambridge at 519-621-5090 Ext 260. Anthony will meet with you and help you decide how to deal with your debt.

Of course you can also call Howard Hayes or me, Douglas Hoyes, here in our Cambridge office at (519) 622-3773. We will review your situation and help you decide whether or not a consumer proposal or a personal bankruptcy in Cambridge is the right answer for you.

My point is this: yes, debt is very stressful, but you do not need to suffer alone. There are options, so give us a call our Cambridge office at (519) 622-3773, or e-mail me your question and let’s get started.

About once every month or two someone I meet with in my Cambridge bankruptcy office who asks me a simple question:

Is it bad to file bankruptcy?

They then go on to say that they borrowed the money, and they feel bad about going bankrupt.

My answer is this: bankruptcy is neither good or bad. It is a legal process that discharges your debts, but it carries with it some obligations and repercussions. I believe a better question is this: What will happen if you don’t go bankrupt?

If the answer is that your creditors will take you to court, sue you, and start to garnishee your wages, and if as a result of that you will be unable to pay your rent and buy groceries, then bankruptcy is probably a better option. On the other hand, if you can repay your debts on your own, than for you bankruptcy is probably not a good option.

When I meet with you I will talk about bankruptcy, but I will also discuss consumer proposals in Cambridge as an alternative to filing bankruptcy. We will talk about other possible solutions, like a debt consolidation loan, or credit counselling in Cambridge. After reviewing all of your options you will be able to decide whether bankruptcy is "good" or "bad" for you.

Note that I said that you will decide. Filing bankruptcy is a very personal decision; I’ll provide you with the facts, but you will make the decision, so to arrange for a free initial consultation, please call my Cambridge office at (519) 622-3773, or e-mail me a question and my staff will set up a meeting so that I can personally review your situation, and help you decide on the best option for resolving your financial difficulties.

In most cases number crunching is necessary, since the cost of bankruptcy depends on your income, family size, and other factors. Last week, at the end of our meeting, a lady asked me "don’t get tired of working with numbers all day long?"

No-one had ever asked me that, and I had never even considered it.

My answer to her was simple: I don’t spend my day working with numbers; I spend my day working with people. For me, the numbers are just a way to help understand your situation. The numbers are only a starting point. The solution for your money problems will depend on the numbers, but also on you.

What are your goals? Do you want to keep your car? Own a house some day? Put your kids through college?

Or are your goals more immediate, like preventing your wages from being garnisheed, or stoping the phone from ringing with collection agent calls.

Whatever your goals, if you have money problems, please call my Cambridge office at (519) 622-3773, or e-mail me a question and my staff will set up a meeting so that I can personally meet with you, help you crunch the numbers, and, most importantly, help you work out a solution to your money problems.

Earlier this afternoon I visited the offices of the Family Counselling Centre of Cambridge & North Dumfries and met with Anthony Benedetto, Credit Counsellor, and Bobbye Goldenberg, the Executive Director.

Since 1940 the Family Counselling Centre of Cambridge & North Dumfries, a not-for-profit agency, has worked to ensure the health, safety and well-being of our community. Located on Walnut Street, they provide a number of programs to residents of Cambridge, including credit counselling.

Credit counselling is an alternative to bankruptcy in Cambridge. If you can afford to repay your debts in full, but you just need some time, credit counselling may be a great solution. I have worked with Anthony many times over the years, and based on the feedback I have received from his clients, Anthony is great at helping you understand your options, and working out a plan that works for you.

For more information, contact Anthony directly at 519-621-5090 ext 260, or e-mail Anthony to arrange a no-charge initial consultation. In addition to meeting with clients in Cambridge, he also meets with clients once per week in Ayr, so give Anthony a call and see if credit counselling is a solution for you.

Although you are reading this on the bankruptcy-cambridge.ca web site, I don’t want to talk about bankruptcy in Cambridge.

When I meet with people in my Cambridge office, I like to mention all bankruptcy alternatives. I’ll mention debt consolidation loans and credit counselling, and I always like to mention Cambridge’s best kept secret method of debt relief: consumer proposals.

A consumer proposal is a deal that I negotiate on your behalf with your creditors. He was injured at work, and while he was off work recuperating he used his credit cards to survive. He’s back at work now and has a job, and can make a payment each month, but he can’t afford to pay what the full amount the creditors are asking; the high interest is just too much.

He knows he owes the money and he doesn’t want to go bankrupt, but he doesn’t make enough to qualify for a debt consolidation loan. The solution may be a consumer proposal.

Based on his income, it is likely that his creditors would accept a proposal of $300 per month for the next three years. As the proposal administrator my firm, Hoyes Michalos & Associates Inc., takes the $300 and distributes it to the creditors, with the larger creditors getting a bigger share of the proceeds.

Since I file more consumer proposals in Cambridge each year than any other trustee, I can predict that there is a very good chance that his creditors will accept the proposal. He will have one monthly payment to make, and he no longer has to worry about trying to juggle many credit card payments each month.

A consumer proposal is not the solution for everyone, but for many people it is the best solution, so I encourage you to e-mail me or call me in Cambridge at (519) 622-3773 so that I can review your situation and help you decide which option is best for you.